The All India Sarafa Association — Gold: ₹1,40,400/10g; +Rs 960. On Jan. 5 in New Delhi, domestic gold prices rose by Rs 960 to Rs 1,40,400 per 10 grams, driven by intensified geopolitical risk and renewed safe‑haven flows that pushed international spot gold sharply higher.
- Price: Rs 1,40,400 per 10 g (99.9% purity)
- Change: +Rs 960 from previous close (Rs 1,39,440)
- Silver: Rs 2,44,000 per kg (up Rs 2,600)
- Source & Date: All India Sarafa Association / PTI — Jan 5
Market context
The move in New Delhi mirrored a larger international re‑pricing: spot gold advanced roughly USD 87.74 (about 2.0%) to USD 4,418.24 an ounce, while spot silver climbed to USD 75.02 an ounce. Traders and analysts attribute the lift to heightened geopolitical events — cited by HDFC Securities and Mirae Asset ShareKhan analysts — which have reinstated bullion’s role as a liquidity drawer with a compact bullion bar’s substantial heft and a metal’s satiny sheen serving as tactile reminders of real‑asset security.
HDFC Securities’ Saumil Gandhi noted that recent US actions and tense regional rhetoric have intensified safe‑haven demand. Praveen Singh at Mirae Asset ShareKhan observed the same dynamic following heightened US activity in Latin America, which prompted immediate risk repricing across currencies and commodities. For silver, Kotak Mutual Fund’s Satish Dondapati and Augmont’s Renisha Chainani point to structural supports: higher margin requirements at the CME, China’s export restrictions effective Jan 1, and Washington’s designation of silver as a critical mineral in 2025 — all factors tightening supply and elevating industrial and investment demand.
Why this matters to US retailers and investors
For US jewelry retailers and bullion dealers the implications are direct. A near‑term leg up in gold increases replacement and working‑stock costs: margin compression can follow quickly unless prices are hedged or cost pass‑through is managed with precision. Retailers that price on fixed‑margin markups may see a squeeze on gross margins; those holding inventory purchased at lower levels realize immediate unrealized gains but also face higher replacement exposure.
For investors, the price action underscores gold’s current function as a macro hedge. The uptick argues for reviewing hedge ratios on inventory and coin/ETF allocations — particularly for funds or treasuries exposed to FX swings and regional risk. Silver’s steeper move and its industrial demand profile suggest differentiated strategies: physical silver and industrial off‑take play a different role from allocation to gold, with tighter supply channels likely to amplify volatility.
Operationally, US firms should check three practical levers: inventory revaluation cadence, margin and financing terms with bullion lenders, and customer‑facing pricing policies (pre‑order deposits, buy‑back spreads). Simple adjustments — tighter margin calls, staged inventory replenishment, and clearer client communications — can protect margins while keeping stock available for high‑net‑worth buyers seeking tangible hedges.
In short, Monday’s move to Rs 1.40 lakh per 10 g is not only a headline number: it is a signal that geopolitical shocks remain a primary driver for precious metals into 2026, and that both retailers and investors should treat current prices as part of a broader risk‑management exercise rather than a short‑lived trading blip.
Image Referance: https://thesentimes.com/gold-rises-rs-960-to-rs-1-4-lakh-10g-amid-strong-global-trends/